House of Fraser records first profit for decade

The department store chain, which has branches in Leeds, Hull, Sheffield, Skipton, Huddersfield and Grimsby, said sales rose 4.2 per cent to a record £1.3bn for the year to January 30.

The main winner was online, with sales up 27 per cent on a like-for-like 52-week basis, representing 19 per cent of total sales, whilst bricks and mortar store sales rose 0.1 per cent on a like-for-like 52 week basis.

The group made an underlying profit of £1.3m, the first profit since 2006.

Nigel Oddy, CEO of House of Fraser, said: “We have continued to invest in our business throughout the year, strengthening our multi-channel proposition and enhancing our store environments with six extensive store refurbishments completed in the year.”

These included refurbishments at its Leeds and Huddersfield stores.

Mr Oddy said the response to its spring/summer 2016 collection has been encouraging, despite a slower than expected start to the new financial year as has been documented across the retail sector.

The group said the first weeks of its new financial year were hit by challenging trading conditions, as seen across the retail sector, with sales for the 10 weeks to April 9 in line with last year.

“Looking ahead, whilst mindful of ongoing uncertainty around the EU referendum and the challenging market conditions experienced across the retail industry since the beginning of 2016, we remain cautiously optimistic and believe we are well positioned to deliver further growth in the year ahead,” he added.

The group reported strong performance in menswear, up 8.5 per cent, and accessories, up 4.6 per cent. It said it is focused on further UK growth and exploring expansion opportunities overseas.